When a Market Is Fully Corrected for Externalities, It

question 116

Multiple Choice

When a market is fully corrected for externalities, it:

• A)is efficient and maximizes surplus.
• B)is equitable and makes everyone better off.
• C)must be maintained through government regulation.
• D)All of these are true.

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Definitions:

Certified Check

A personal check guaranteed by the issuing bank, ensuring that the check writer has sufficient funds for the check to clear.

Draw

A term referring to either a poker game variant, the process of selecting something in a random manner, such as in a lottery, or drawing funds against a line of credit.

Responsible

Being accountable for something within one's power, control, or management.

Service Fee

A charge levied for the provision of a particular service, often added to the basic cost of the service.